Test Bank for Business Essentials, 14th Edition by Ronald J. Ebert, Griffin
Business Essentials, 14e, (Ebert) Complete Chapters ✅
Chapter 1 The U.S. Business Environment
1) Which of the following best describes profit?
A) Total money taken in by a corporation
B) Increases in income from year to year
C) Increases in a corporation's stock price
D) Revenue generated by goods and services
E) Difference between revenues and expenses
Answer: E
Difficulty: Moderate
AACSB: Application of knowledge
Question Category: Application of knowledge
LO: 1.1: Define the nature of U.S. business, describe the external environments of business,
and discuss how these environments affect the success or failure of organizations.
2) Which of the following describes where a firm conducts its operations and derives its
revenues?
A) Global business environment
B) Economic environment
C) Domestic business environment
D) Technological environment
E) Political-legal environment
Answer: C
Difficulty: Moderate
AACSB: Application of knowledge
Question Category: Concept
LO: 1.1: Define the nature of U.S. business, describe the external environments of business,
and discuss how these environments affect the success or failure of organizations.
3) At a general level factors such as international trade agreements, economic conditions, and
political unrest will have the greatest impact in which type of business environment?
A) Global business environment
B) Economic environment
C) Domestic business environment
D) Technological environment
E) Political-legal environment
Answer: A
Difficulty: Moderate
AACSB: Application of knowledge
Question Category: Concept
LO: 1.1: Define the nature of U.S. business, describe the external environments of business,
and discuss how these environments affect the success or failure of organizations.
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,4) Changes in which type of business environment can reduce or replace the need for traditional
working methods, physical equipment, and other platforms needed to conduct business?
A) Global business environment
B) Economic environment
C) Domestic business environment
D) Technological environment
E) Political-legal environment
Answer: D
Difficulty: Moderate
AACSB: Application of knowledge
Question Category: Concept
LO: 1.1: Define the nature of U.S. business, describe the external environments of business,
and discuss how these environments affect the success or failure of organizations.
5) As a teenager, Melinda started cutting grass for her neighbor. She did a good job, and more
and more neighbors began to hire her. After saving money and investing in additional equipment,
Melinda began to earn an even greater profit. Which of the following did Melinda create when
she began cutting her neighbor's yard and earning income?
A) Nonprofit
B) Corporate culture
C) Market economy
D) Monopolistic competition
E) Business
Answer: E
Difficulty: Easy
AACSB: Application of knowledge
Question Category: Concept
LO: 1.1: Define the nature of U.S. business, describe the external environments of business,
and discuss how these environments affect the success or failure of organizations.
6) When choosing how to pursue profits, what should be the primary consideration for a
business?
A) Consumers wants or needs
B) How much product to produce
C) Creating the most innovations and opportunity
D) How to compete in the global marketplace
E) Changing demographics in the community
Answer: A
Difficulty: Moderate
AACSB: Application of knowledge
Question Category: Concept
LO: 1.1: Define the nature of U.S. business, describe the external environments of business,
and discuss how these environments affect the success or failure of organizations.
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,7) Which of the following consists of everything outside an organization's boundaries that might
affect how the business operates?
A) Opportunities and enterprise
B) Corporate culture
C) External environment
D) Economic systems
E) Factors of production
Answer: C
Difficulty: Moderate
AACSB: Application of knowledge
Question Category: Concept
LO: 1.1: Define the nature of U.S. business, describe the external environments of business,
and discuss how these environments affect the success or failure of organizations.
8) When Aimee opened her retail shop in her local community, she worked to establish strong
relationships with suppliers and customers, and distinguished her shop from the competition. In
which environment is Aimee doing business?
A) Global
B) Political-legal
C) Domestic
D) Economic
E) Technological
Answer: C
Difficulty: Moderate
AACSB: Application of knowledge
Question Category: Concept
LO: 1.1: Define the nature of U.S. business, describe the external environments of business,
and discuss how these environments affect the success or failure of organizations.
9) The Basic Broom Company orders much of its raw material from overseas markets, even
though the product is made locally. How might changes in the global business environment
impact the company?
A) It may not be able to get raw material when needed.
B) It may have a hard time keeping up with technological changes.
C) It may not fully understand the wants and needs of customers.
D) It may face changes in the factors of production.
E) It may be challenged by changes in the labor force.
Answer: A
Difficulty: Challenging
AACSB: Application of knowledge
Question Category: Concept
LO: 1.1: Define the nature of U.S. business, describe the external environments of business,
and discuss how these environments affect the success or failure of organizations.
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, 10) Which of the following includes all the ways a firm creates value for their customers?
A) Technological environment
B) Profitability
C) Economic environment
D) Creation of a market economy
E) Law of supply and demand
Answer: A
Difficulty: Moderate
AACSB: Application of knowledge
Question Category: Concept
LO: 1.1: Define the nature of U.S. business, describe the external environments of business,
and discuss how these environments affect the success or failure of organizations.
11) Sally's Supply shop has recently had to change the process for shipping supplies because of
changes in government regulations. Sally's Supply now also has to change how the shop reports
profit and loss, and when those reports are processed. Which of the following is forcing these
changes for Sally's Supply shop?
A) The laws of supply and demand
B) Political-legal environment
C) The establishment of perfect competition
D) Changes in the market economy
E) Economic environment
Answer: B
Difficulty: Moderate
AACSB: Application of knowledge
Question Category: Concept
LO: 1.1: Define the nature of U.S. business, describe the external environments of business,
and discuss how these environments affect the success or failure of organizations.
12) A new restaurant recently opened in the local community. It serves a variety of multicultural
foods in order to appeal to a wide variety of customers, based on the local demographic
characteristics of the community. Which external environment of business is this restaurant
considering when they support the customs, values, and demographics of the local community?
A) Monopoly
B) Sociocultural
C) Freedom of choice
D) Perfect competition
E) Global
Answer: B
Difficulty: Moderate
AACSB: Application of knowledge
Question Category: Concept
LO: 1.1: Define the nature of U.S. business, describe the external environments of business,
and discuss how these environments affect the success or failure of organizations.
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